The Gorillaz album was made bookmakers' favourites when the nominations were announced in July - but cartoon bassist Murdoc described the nomination as "like carrying a dead albatross round your neck for eternity".

Technics Mercury Music Prize nominees

Basement Jaxx - Rooty

Elbow - Asleep in the Back

Goldfrapp - Felt Mountain

Ed Harcourt - Here Be Monsters

PJ Harvey - Stories from the City, Stories from the Sea

Tom McRae - Tom McRae

Radiohead - Amnesiac

Susheela Raman - Salt Rain

Super Furry Animals - Rings Around the World

Turin Brakes - The Optimist LP

Zero 7 - Simple Things

At the time, record company executives said they would not withdraw the album.

But now the Prize's organisers say those at the label changed their minds and so the band has been removed from the shortlist.

Gorillaz, who have had hits with singles Clint Eastwood and 19-2000, are a "virtual band" of cartoon characters created by artists including Blur's Albarn and hip-hop hero Dan "The Automator" Nakamura.

Fictional bass player Murdoc said the nomination "sounds a bit heavy" when the shortlist was announced.

"No thanks man. Why don't you nominate some other poor Muppet," he said in a statement.

PJ Harvey: Nominated twice before

But their record label Parlophone refused to withdraw them at the time.

Parlophone's managing director Keith Wozencroft said: "I feel that the Gorillaz have made a fantastic album, and that is why I entered it for the Mercury Music Prize."

The shortlist - which now comprises 11 albums - is intended to reflect musical excellence rather than sales or popularity.

A panel of music industry judges will pick the album they think is the best British or Irish release of the year.

Past Mercury winners

1992 Primal Scream

1993 Suede

1994 M People

1995 Portishead

1996 Pulp

1997 Roni Size & Reprazent

1998 Gomez

1999 Talvin Singh

2000 Badly Drawn Boy

Commercial successes like U2 and Craig David are absent and there is also no room for any folk, jazz or classical albums.

But the publicity boost from a Mercury nomination usually guarantees a sales boost of between 20% and 100%.

Last year the £20,000 prize went to Damon Gough, better known as Badly Drawn Boy,
for his low-key offering The Hour Of Bewilderbeast.

For the first time this year the event will be broadcast by Channel 4, with a special 90-minute programme to be screened on 12 September.

As in previous years, the Mercury Prize show will also be broadcast on BBC Radio 1.